Trade Integration, Environmental Degradation, and Public Health in Chile: Assessing the Linkages

This paper uses an empirical simulation model to examine links between trade integration, pollution, and public health in Chile. Using a general equilibrium framework, we synthesize economic, engineering, and health data in a way that elucidates this complex relationship and can support more coherent policy in all three areas. The basic tool of analysis is a 72-sector calibrated general equilibrium (CGE) model, incorporating monitoring functions for 13 effluent categories and a variety of mortality and morbidity indicators. While the methodology supports more general applications, present attention is confined to atmospheric pollution and health status in the Santiago metropolitan area.